Settling Small Estates (ME)
In Maine, small estates can completely bypass probate via small estate affidavit, or simplify it via summary administration. Regardless of estate size, probate is not required if an estate contains only assets exempt from probate.
Small Estate Affidavit
If a Maine estate has a gross value <$40,000, you can use the small estate process to settle the estate with no court involvement.
Requirements
To use the small estate process, the following conditions must be true:
- The entire probate estate has a gross value <$40K
- At least 30 days have passed since the death
- No petition has already been made to the court to officially appoint a personal representative
In determining the gross value of the estate, you should value assets as of the date of death, and ignore any unsecured debts (but do subtract things like liens and mortgages). Do not include any assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.
Process
To use the small estate process:
- Prepare a Small Estate Affidavit (Form AF-102) - it may be helpful to attach a copy of the death certificate and the will (if one exists)
- Obtain possession of estate assets by presenting the affidavit to current custodians (this affidavit cannot be used to collect real estate)
- Settle the estate in the normal way (pay obligations, distribute remaining assets)
- If you are transferring a vehicle, see DMV Instructions
- If everything goes smoothly, no court involvement will ever be required
Estate Settlement Considerations
Before paying any debts or making any distributions, be sure to account for any Family Entitlements in ME, which typically have priority over everything except expenses of the last illness, funeral charges, and any estate administrations expenses.
Even if the estate does not go through probate, you may still be entitled to Executor Compensation in ME, and this compensation also has priority over most estate debts.
Estate debts have priority over most distributions in turn, so before distributing assets you should resolve any estate debts. If the estate makes any distributions beyond amounts set aside for family entitlements, unpaid creditors have the right to sue the recipients for repayment using those excess distributions. Consequently, even if the settlement process does not require you to publish a Notice to Creditors, you may want to follow ME probate rules for finding estate debts, since doing so may limit the time creditors have to pursue repayment.
If estate solvency is uncertain, an executor should consider going through official probate for the increased creditor protection it offers. Alternately, such uncertainty can sometimes persuade creditors to forgive a portion of debts, since they will want to avoid legal expenses as well, and may prefer to get something rather than nothing.
See also Making Distributions.
See 18-C ME Rev Stat § 3-1201.
Summary Administration
Summary Administration (also known as simplified probate) can be used for somewhat larger estates, or if you simply want court involvement so that enforcement and protection are a bit more formalized.
Requirements
You can use summary administration if the estate is worth less than the sum of:
- The value of any homestead allowance, exempt property, and family allowance
- Estate administration expenses
- Reasonable funeral expenses
- Reasonable and necessary medical and hospital expenses of the last illness
In determining the value of the estate, you should value assets as of the date of death, and subtract any secured debts such as liens or mortgages (but ignore unsecured debt such as credit card debt). Do not include any assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.
Process
To settle an estate via summary administration:
- Submit to the court a Petition for Informal Appointment of Personal Representative (Form DE-201(I)) or an Application for Informal - Intestate (Form DE-101(I)) if there is no will
- Upon approval, the court will issue you "Letters" giving you authority to act as the estate personal representative
- Prepare and submit an Inventory (Form DE-405) to the court (consider attaching an EstateExec Inventory Report)
- Use your "Letters" to collect estate assets, then disburse according the priority order listed in the Requirements above
- Submit a Closing Statement (Form DE-603)
See 18-C ME Rev Stat § 3-1203.
Court
In Maine, the County Probate Court handles wills and estate probate.
Additional Information
If your estate doesn't qualify for a small estate approach, or you're simply interested in exploring standard probate, take a look at Probate in ME.
And since probate is just the court-supervised subset of winding up a person's affairs after death, you'll probably want to check out our Complete Guide to Estate Settlement in ME.
Finally, in case you're interested, details about handling small estates in other states can be found here: